Glossary

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Glossary
Total return

Total return

The total return is the return generated by the move in the share price or net asset value including dividends or income.

When dividends are not included in the performance calculation, it is known as Capital Return

NAV Total Return per share

NAV Total Return or NAV Total Return per Share NAV Total Return is the return of all the assets of the company less any money owed, including dividends NAV Total Return per Share is the return of all the assets of the company less any money owed, including dividends, divided by the number of outstanding share in issue. See NAV per […]

Capital return

The capital return reflects the return generated by the move in the share price or net asset value excluding dividends or income. Performance is often quotes on a “Total Return” basis, where the dividend is included with the capital return.

reference benchmark

reference benchmark – When a fund does not have a benchmark, investment companies and investment managers offer reference or a comparitor benchmark. This helps investors / shareholders appreciate how the NAV and share prices have done and helps put that performance into context. Funds that do not have a benchmark index are often absolute return funds, a total return funds or pure unfettered stock picking funds.

comparitor – as a substitute benchmark

comparitor – When a fund does not have a benchmark, investment companies and investment managers offer a comparitor or reference benchmark. This helps investors / shareholders appreciate how the NAV and share prices have done and helps put that performance into context. Funds that do not have a benchmark index are often absolute return funds, […]

SORP

SORP is the acronym for Statement of Recommended Practice and refers to Financial Statements of Investment Trust Companies and Venture Capital Trusts issued by the Association of Investment Trust Companies. SORP recommends that 75% of management fees and finance costs can come from capital and 25% to revenue. This can reflect the balance of the capital and […]